Staff Reporter
Commissioner for Cooperatives Development, Mr. Robert Bariyo Barigye, has ordered the dissolution of the board of the Ntungamo Dairy Farmers’ Cooperative Union (NDFCU) and a review of employee contracts after farmers reported a loss of over UGX 28.6 billion from 2021 to 2023.
The loss was uncovered during an internal audit by the Union’s Supervisory Committee, chaired last year, revealing that UGX 28 billion was unaccounted for, UGX 460 million went missing from milk sales, and UGX 100 million was stolen while in transit to the bank.
At a special General Meeting on Thursday, Mr. Barigye instructed the board, chaired by one of the Union’s founders, Mr. Joseph Kato Lubega, to step aside. Members then appointed a new board, to be chaired by Mr. Arinaitwe Emmanuel, which will also include Ms. Maria Mirembe, former chairperson of the Supervisory Committee, and businessman Mr. Patrick Nyehangane.
Mr. Barigye emphasized that the board’s suspension was necessary to allow for investigations, including a forensic audit to trace how the funds were used. Members accused the former board of withholding information, particularly concerning losses, and attempting to block the forensic audit that could have exposed more irregularities.
However, Mr. Lubega defended the board, claiming it was being unfairly blamed due to disagreements with the Supervisory Committee, which, according to him, overlooked important factors in their audit that would have cleared the board of mismanagement.
The Farmers’ Union, founded in 2003 by several dairy farmers to collectively manage pricing, has faced increasing scrutiny. In July this year, at least five employees and some board members were arrested by the State House Anti-Corruption Unit over corruption and negligence linked to the financial losses.
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